Latest Car News in India

Monday, April 30, 2012

Car makers in India boosting up petrol car sales

Time to attract consumers is the new motto of the car manufacturers in India. The bad economy, sluggish market condition and sky rocketing petrol prices are stopping many consumers from buying their dream cars. To make it easier for the consumers, the car makers are making an effort and offering free gifts from gold coins to LED televisions to amplify petrol car sales. India’s largest car manufacturer, Maruti Suzuki India is offering cash discount of about Rs. 20000 to Rs. 25000 on its cars like Maruti Alto and Maruti Wagon R. On the other hand; car makers like Toyota Kirloskar Motors and General Motors are proffering free insurance services and free maintenance services respectively.

Honda Motors India is also not behind and is trying its best to lure consumers towards it by offering appealing financing schemes for its new small car, Honda Brio. Because of slow petrol car sales, discounts on the petrol cars are at its peak. As per the managing executive officer of sales and marketing of Maruti India, Mr. Mayank Pareek, the firm is right now working hard on its cars like Ertiga and trying to boost sales in urban as well as in the rural areas. The models of MSI which are available in both diesel and petrol comprise of 40% of sales from petrol version in rural areas as compared to 15% in the urban areas. The discounts and offers are being proffered on Wagon R, Alto, Estilo and A-Star, out which none of them are available in diesel engine options.

Since 2011, the petrol prices have gone up about 5 times, which is quite too much. There is Rs. 25.51 a litre difference between petrol and diesel, which gives a major reason to the consumers to drift towards diesel cars. Because of this, petrol car sales have tumbled down by a whopping 15%. According to the Maruti Suzuki India chairman, Mr. R.C. Bhargava, this financial year, the company is trying its best to pull down this 15% drop rate to 6%.

India’s second largest car maker, Hyundai Motors is proffering an exchange royalty of Rs. 10000 on Hyundai Eon. On the other hand, cash discount of Rs. 15000 is being offered on Accent and Hyundai Santro and gifts like LED televisions are also being offered on few cars of Hyundai.

Toyota Kirloskar Motors is also trying to lure the consumers and working on educating its consumers about diesel cars. A diesel car gives a good mileage and is economic only when it is driven up to 1500 km per month.